Spreading FUD on broadband regulation

Stuart Corner
Friday, 08 February 2008 07:54

Opinion and Analysis

If Telstra sees this as less portentous of a yes-ministerial backflip than "no compelling case", it is privy to information that is not in this letter: nor in any other public utterance from the minister or Graeme Samuel.

Irving re-iterated that "Having had these assurances from both our elected leaders and the ACCC has enabled us to go ahead. Those commentators who painted [the decision to rollout more ADSL2+] as a Telstra backflip were wrong. We have not changed our position at all. They have come and met us and that has enabled us to go ahead."

So which is it: regulation by secret deals, or Telstra spin-doctoring to cover up its backflip on ADSL2+ rollout plans? As I said, take your pick. But, if it is spin-doctoring by Telstra, it's a brilliant move. Now the seeds of FUD have been sown it will be very difficult for the Government to uproot them. In the face of such uncertainty as to the government's regulatory intentions, competitors seeking funds for investment are likely to find the job even harder.